iPod touch batteries don't overcharge. But if you took the battery out of the ipod, then attempted to charge that somehow, then it probably could overcharge.
Ipod touch batteries are wired up in a circuit that, once the battery is full, it won't put more power into the battery. Other things like laptops are the same. Only batteries like rechargeable AA or AAA batteries, which are not connected to a circuit when charging, can technically overcharge, unless they are connected to, lets say a wireless mouse, and when you plug the mouse in it charges, then that kind of batteries don't over charge, unless the product (wireless mouse) says that it can, unless the mouse says that it does not protect against overcharging.
If you noticed a major change in the battery performance, see your nearest apple store. Also, read the manual, it tells u lots of stuff about charging, and how to maximize the use of the battery.
Enjoy!
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